This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Hutchinson Technology Reports First Quarter Results

Stocks in this article: HTCH

"Looking beyond the second quarter," said Penn, "we expect our financial results to benefit from higher volume and improved fixed cost leverage, increased adoption of our DSA suspensions, the cost benefits of our TSA+ process, further cost reductions as we transition more assembly volume to Thailand and continued consolidation and streamlining of our U.S. operations."

Hutchinson Technology to Host Conference Call

The company will conduct a conference call and webcast for investors beginning at 4:30 p.m. Central Time today.  Individual investors and news media may participate in the conference call live via the webcast, which will be available through the Investor Relations page on Hutchinson Technology's web site at . Webcast participants will need to complete a brief registration form and should allow extra time before the webcast begins to register and, if necessary, download and install audio software. 

About Hutchinson Technology

Hutchinson Technology is a global technology leader committed to creating value by developing solutions to critical customer problems. The company's Disk Drive Components Division is a key worldwide supplier of suspension assemblies for disk drives. The company's BioMeasurement Division is focused on bringing new technologies and products to the market that provide information clinicians can use to improve the quality of health care and reduce costs.

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements, including statements regarding demand for and shipments of disk drives, disk drive components and the company's products, product mix, production capability and costs, operating performance, operations in Thailand and the United States, cost reductions, outstanding debt and financial results. The company does not undertake to update its forward-looking statements. These statements involve risks and uncertainties. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of changes in market demand and market consumption of disk drives or suspension assemblies, changes in demand for our products, market acceptance of new products, the company's ability to produce suspension assemblies at levels of precision, quality, volume and cost its customers require, changes in product mix, changes in customers yields, changes in storage capacity requirements, changes in expected data density, changes in the company's ability to operate its assembly operation in Thailand, changes in the company's ability to reduce costs and other factors described from time to time in the company's reports filed with the Securities and Exchange Commission.

Hutchinson Technology Incorporated
Condensed Consolidated Statements of Operations - Unaudited
(In thousands, except per share data)
  Thirteen Weeks Ended Thirteen Weeks Ended
  December 30, 2012 December 25, 2011
Net sales  $ 63,699  $ 58,475
Cost of sales 56,278 56,174
Gross profit 7,421 2,301
Research and development expenses 3,339 3,948
Selling, general and administrative expenses 6,166 7,173
Severance and other expenses  1,018  (711)
Flood-related costs, (net of insurance recoveries)  --   -- 
Loss from operations (3,102) (8,109)
Other income (expense), net 472 (87)
Interest Income 50 17
Interest expense (4,023) (4,283)
Gain on short- and long-term investments  127  30
Loss before income taxes (6,476) (12,432)
Provision for income taxes  46 44
Net loss  $ (6,522)  $ (12,476)
Basic loss per share  $ (0.27)  $ (0.53)
Diluted loss per share  $ (0.27)  $ (0.53)
Weighted-average common shares outstanding 23,951 23,395
Weighted-average diluted shares outstanding 23,951 23,395
Hutchinson Technology Incorporated
Condensed Consolidated Balance Sheets - Unaudited
(In thousands, except shares data)
  December 30, 2012 September 30, 2012
Current assets:    
Cash and cash equivalents  $ 56,300  $ 53,653
Short-term investments - restricted 1,200 1,200
Trade receivables, net 23,998 21,438
Other receivables 6,735 3,880
Inventories 46,844 41,432
Other current assets 3,433 7,203
Total current assets 138,510 128,806
Property, plant and equipment, net 199,280 202,468
Other assets 4,929 5,014
Total assets  $ 342,719  $ 336,288
Current liabilities:    
Current maturities of long-term debt, net of discount  $ 15,968  $ 11,514
Current portion of capital lease 424  184
Accounts payable 17,950 13,982
Accrued expenses 8,950 6,350
Accrued compensation 9,066 9,656
Total current liabilities 52,358 41,686
Long-term debt, net of discount 126,091 125,232
Capital lease obligation 1,213  -- 
Other long-term liabilities 1,600 1,540
Shareholders' equity:    
Common stock $.01 par value, 100,000,000 shares authorized, 24,046,000 and 23,900,000 issued and outstanding 240 239
Additional paid-in capital 430,536 430,448
Accumulated other comprehensive loss (69) (129)
Accumulated loss (269,250) (262,728)
Total shareholders' equity 161,457 167,830
Total liabilities and shareholders' equity  $ 342,719  $ 336,288
Hutchinson Technology Incorporated
Condensed Consolidated Statements of Cash Flows - Unaudited
(Dollars in thousands)
  Thirteen Weeks Ended Thirteen Weeks Ended
  December 30, 2012 December 25, 2011
Operating activities:    
Net loss  $ (6,522)  $ (12,476)
Adjustments to reconcile net loss to cash (used for) provided by operating activities:    
Depreciation and amortization 9,596 9,334
Stock-based compensation 88 388
Gain on short- and long-term investments (127) (30)
Loss on disposal of assets 62 (38)
Asset impairment charge  --   8,338
Non-cash interest expense 1,020 1,672
Severance and other expenses  387  (1,624)
Flood insurance receivable  --   (4,727)
Changes in operating assets and liabilities (6,068) 11,665
 Cash (used for) provided by operating activities (1,564) 12,502
Investing activities:    
Capital expenditures (5,063) (5,384)
Change in restricted cash 3,400  (2)
Purchases of marketable securities (1,200) (1,613)
Sales / maturities of marketable securities 1,327 2,055
 Cash used for investing activities (1,536) (4,944)
Financing activities:    
Repayments of capital lease  (47)  (88)
Proceeds from sale/leaseback  1,685  -- 
Repayments of revolving credit line  (58,648)  (65,131)
Proceeds from revolving credit line  62,757  54,722
Proceeds from issuance of common stock  --   20
 Cash provided by (used for) financing activities 5,747 (10,477)
Net increase (decrease) in cash and cash equivalents 2,647 (2,919)
Cash and cash equivalents at beginning of period 53,653 57,554
Cash and cash equivalents at end of period  $ 56,300  $ 54,635
Hutchinson Technology Incorporated
Loss Per Share Calculation - Unaudited
(In thousands, except per share data)
  Thirteen Weeks Ended Thirteen Weeks Ended
  December 30, 2012 December 25, 2011
Net loss (A)  $ (6,522)  $ (12,476)
Weighted average common shares outstanding (B) 23,951 23,395
Dilutive potential common shares  --   -- 
Weighted average common and diluted shares outstanding (C) 23,951 23,395
Basic loss per share [(A)/(B)]  $ (0.27)  $ (0.53)
Diluted loss per share [(A)/(C)]  $ (0.27)  $ (0.53)
Hutchinson Technology Incorporated
Reconciliation of Non-GAAP to GAAP Financial Measures - Unaudited
(In thousands, except per share data)
  Thirteen Weeks Ended Fourteen Weeks Ended Thirteen Weeks Ended
  December 30, 2012 September 30, 2012 December 25, 2011
Net loss - GAAP  $ (6,522)  $ (14,731)  $ (12,476)
Add flood-related costs  --  546  13,727
Subtract flood insurance recoveries  --  --  (13,727)
Add severance and other expenses  1,018  --  --
Subtract severance and other expenses  --  --  (711)
Add debt refinancing costs  --  201  --
Add non-cash interest expenses  1,020  980  1,672
Net loss - Adjusted  $ (4,484)  $ (13,004)  $ (11,515)
Net loss per common share – GAAP:      
Basic loss per share  $ (0.27)  $ (0.62)  $ (0.53)
Diluted loss per share  $ (0.27)  $ (0.62)  $ (0.53)
Net loss per common share – Adjusted:      
Basic loss per share  $ (0.19)  $ (0.54)  $ (0.49)
Diluted loss per share  $ (0.19)  $ (0.54)  $ (0.49)
Weighted average common and common equivalent shares outstanding:      
Basic 23,951 23,884 23,395
Diluted 23,951 23,884 23,395
Net loss per common share basic and diluted, is calculated by dividing net income by weighted average common and common equivalent shares outstanding basic and diluted, respectively.
         Chuck Ives
         Hutchinson Technology Inc.
         Connie Pautz
         Hutchinson Technology Inc.

Hutchinson Technology Incorporated Logo

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs